Even Ethanol Waiver Won't Crack Corn

By

Liam Denning

Aug. 10, 2012 5:08 p.m. ET

This close to an election, a U.N. demand for a change in U.S. domestic policy could end up simply entrenching it. But even if the government listens to Friday's call to suspend the ethanol mandate, corn prices may not drop that much.

Also Friday, the Department of Agriculture confirmed the toll drought has taken on the U.S. farm-belt, projecting the worst corn crop since 2006 at 10.8 billion bushels. In theory, energy legislation requires 4.9 billion, or 46% of the total, be used to produce ethanol for fuel. With corn...